TIIE KORNIXG OREGONIAX. TIIURSDAY, DECEMBER 19, 1907.
3
Y THEY RAISED
RATE OH L
ER
Elliott Gives Reasons for Ac
tion of Northwestern
Railroads.
FORMER RATE WAS TOO LOW
Originally PTixcd to Develop" Traffic,
but "ow Roads Are Swamped and
the Cost of Operation Has
Greatly Increased.
WASHINGTON, Dec. 18. Howard El
liott, president of the 'Northern Pacific
Railway, was the principal witness to
day at the hearing of the Pacific North
west lumber complaints before the In
terstate Commerce Commission. Mr.
Elliott asserted, as James J. Hill assert
ed two or three days ago, that the ad
vance in rates on lumber made by the
railroads was necessary in order that
they should be compensatory on the
various lines. He said that it had be
come evident to the railway managers
that It was necessary to raise the rates
on lumber In order to prevent an abso
lute loss to the roads on the traffic.
IJoads Swamped With Traffic.
He explained that the prosperity of
the West and Northwest had so In
creased the traffic on the lines of all
railways in that section that the com
panies were physically unable to handle
the traffic promptly and efficiently.
This was particularly true of lines in
the Northwest, the traffic of which was
interfered with in the Winter season
very considerably by adverse weather.
He explained that the cost of handling
traffic had increased materially in the
past fv-ear or two on account of higher
wages, increased prices of materials
and similar conditions. He believed
that the rates as fixed by the railway
lines In the advanced tariffs promul
gated were fair among shippers gen
erally, although he was not so certain
that they would enable the carriers to
makevery much profit.
Why Low Hates Were Made.
V
"For several years I have been mak
ing an investigation of the rate sit
uation, with a view to adjusting the
various tariffs w4iere needed," said Mr.
Elliott. "The 40-cent rate was put Into
effect when there was no business for
eastbound cars on the Northern Pa
cific. It was made abnormally low in
order that territory and lumber busi
ness might be developed, and In order
that lumber might reach the Eastern
market- It was In the nature of 'ex
tra business, to be taken care of at a
very low rate. Up to five years ago
the Northern Pacific was not taxed to
Its capacity and was able to handle the
lumber trttffie, and therefore no change
In the rale was made, although the
rate was held to be unjustly low.
"A few years ago, however, the road
reached a point where it was ever
taxed, anu a large part of the traffic
which caused this overtaxp.tlon was the
transportation of lumber, which waa no
longer an infant industry and did not
need further stimulation. Of late years,
also, the general cost of conducting the
railroad business lias increased mark
edly; complications in operation In
creased and all expenses have been
growing. e .
Xo longer Extra Business.
"Ra'te adjustments are going on all over
the country, rates being lowered where
found too high, and raised where found
too low. In this adjustment the lumber
rate was found too low, as it was out of
all proportion to that Imposed on other
classes of commodities, and a decision
was reached to increase the rate to where
it would be In proportion to other classes
of merchandise.
"Lumber transportation is no longer
"extra business,' to be taken at an un
justly low rate. In the last 18 months we
have not got a new dollar for an old one
from the lumber business. Our road has
expended J75.000.000 in improvement of fa
cilities for handling traffic, of which tim
ber is one of the largest items."
Mr. Elliott produced a blue print show
ing profiles of the Illinois Central, Great
Northern and Northern Pacific roads, and
submitted a statement showing the dif
ference In cost of operation, based on re
sistance offered by trains passing over"
grades, operation of "helper", engines,
etc., and other difficulties of operation
over the Northern lines. On the basis of
his calculation, the cost of operation of
the Great Northern is 29 per cent higher
and the Northern Pacific 31 per cent high
er than the cost of operating the Illinois
Central.
Northern Pacific Earnings.
On cross-examination by J. N. Teal, one
f the counsel for the lumbermen, Mr. El
liott said that the road since its reorgani
zation in 1S97 had paid an average of 4.6
per cent In dividends on Its stock and
interest on the par value of its bonds.
Asked as to the cost of operation, he
said for the fiscal yeaj ending June 30
last, the operating expenses were B8
per cent, of the earnings. For the first
four months of this year, when weather
conditions were perfect, the operating
expenses were 69 per cent of the earn
ings, as compared with 51 per cent In
the same period one year ago.
"This 175,000,000 expended for Im
provements, did It come from the earn
ings or from other sources?" asked Mr.
Teal.
"When the road was reorganized
there were five millions In cash and
four millions of bonds which sold for
12.900.000. The reorganization commit
tee was authorized to Issue $1,500,000 a
year in bonds, and also to use the net
proceeds of sales of the land grant " re
plied Mr. Elliott.
"Those were the only sources from
which money could be obtained, and so
about $32,000,000 of earnings have been
put back into the property for better
ment and Improvement. Our sources
from which money could be obtained
were limited."
Conditions In Yellow Pine Belt.
Before Mr. Elliott went on the' stand
William J. Miller and D. C. Bradford,
of Omaha; Charles S. Keith, of Kansas
City, and William E. Barnes, editor ot
the St. Louis Lumberman, testified as
to' conditions in Southern territory.
Several witnesses were examined to
day, among whom were lumber dealers
and operators In the yellow pine dis
tricts and in the Middle West, their
testimony being principally as to the
details of the lumber business.
QIESTIOXS IjAXD HOLDINGS
'Louisville School Board Brings Ac
tion Against Illinois Central.
LOUISVILLa Dec. 18. An important
itep in the action brought uy the Louis
ville School Board two years ago against
the Illinois Central Railroad Company, an
effort being made to declare forfeited
about $200,000 worth of the defendant's
property because it is not used for rail
road purposes, was taken today when the
plaintiff filed an Intervening petition to
declare invalidated the 99-year lease un
der which the Illinois Central holds the
properties of the Chicago. St. Louis &
New Orleans Railroad in Kentucky, and
also the $25,000,000 issue of 50-year bonds
Issued by the Illinois Central on the leased
properties in question.
Under the constitution of Kentucky, no
corporation can hold land for five years
which is not being used for the business
In which it Is engaged. In the Interven
ing petition filed today, which is aimed at
both the owners and lessor of the proper
ty, and the Uuted States Trust Company,
of New York, trustee of the bonds. It is
charged that the property in question, at
Sixth and Walter streets, was not really
included in the mortgage on which the
$25,000,000 bond issue was made, but that
an effort was made to do so long after
ward. The 99-year lease is attacked upon the
allegation that the railroad Is not em
powered by the Legislature to lease or
acquire property anywhere outside of Illinois.
Higher Dividend on Pennsylvania.
PHILADELPHIA,' Dee. 18. The directors
of the Pennsylvania Company, which op
erates the Pennsylvania Kallroad lines west
of Pittsburg, today raised the dividend on
the stock of the company rrom a 6 to a 7
per cent basis. They declared a semi-annual
dividend oC 4 per cent. The last semi-annual
dividend in June was S per cent.
The directors ot the Pittsburg-, Chicago,
Cincinnati Ac St. Louis Company, the Pan
handle line, and controlled by the Pennsyl
vania, today declared the regular semi-annual
dividend of 2 per cent on the pre
ferred stock and the regular semi-annual
dividend of 2 per cent on the common stock.
Inquiries Into Kallroad Holdings.
WASHINGTON, Dec. IS. Senator Till
man today introduced a resolution di
recting the Interstate Commerce Com
mission to inform the Senate whether
any corporations engaged in interstate
commerce are the owners of any of the
stock of other transportation corpora
tions and if so the extent of such owner
ship and to state In which cases these!
corporations have been competitors.
Lehigh Valley Pays Extra.
PHILADELPHIA, Dec. 18. The di
rectors of the Lehigh Valley Railroad
Company today declared the regular
semi-annual dividend of 2 per cent and
an extra .dividend of 1 per cent on the
common stock. The usual semi-annual
dividend of 5 per cent, on the common
stock Is the same as declared at the
last dividend meeting.
Same Rate on Xew York Central.
. NEW YORK. Dec. 18. The regular
quarterly dividend of 1 per cent was
declared today by the directors of the
New York Central Railroad Company.
Reading Pays Regular Dividend.
PHILADELPHIA, Dec. 18. The
Reading Company today declared the
regular semi-annual dividend ef 2
per cent on the common stock.
NEW GRAND JURY AT WORK
Affairs of California Trust Company
Up for Investigation.
SAN FRANCISCO, Dec. 18. The new
county grand jury held its first session
today and after quickly perfecting the
details of organization took up the case
of the missing C'dlton securities and the
connection of certain former officials of
the California Safe Deposit & Trust Com
pany with the disappearance of valuable
stocks and bonds. A number of witnesses
were examined, and the. taking of testi
mony had not been concluded up to the
time when the meeting adjourned until to
morrow. - , . -
Superior Judge Lawlor this morning Is
sued a writ of habeas corpus for Walter
J. Bartnett. the Imprisoned director of the
California Safe Deposit & Trust Company,
upon an application made by his attorneys
late last night.
BANK CASHIER FOOD DEAD
Concern Closes Doors on Xews ol
Official's Drowning.
NORTH ATTLEBORO, Mass.. Dec. 18.
The Jewelers National Bank, of this
town, whose vice-president and cashier,
Frederick E. Sargeant, was found dead
In a bathtub in his apartments last
night,- failed to open Its doors for busi
ness today. Bank Examiners are mak
ing an Investigation.
Although Albert H. Wiggins, presi
dent of the bank, who is in New York
City, sent communications from that
city last night, that the' institution
would be open for business as usual
today, the directors at an early meet
ing today voted to keep the bank closed
until a thorough examination of its
books had been made.
C. S. Holden, the medical examiner,
stated today that he had not given the
cause of the death of Mr. Sargeant as
"accidental drowning," as reported last
night, but simply as "drowning."
According to the last statement of
the bank, the capital was $500,000; sur
plus and undivided profits, $40,350; de
posits, $1,350,710, and loans and dis
counts, $917,760.
The bank was the successor of the
Attleboro National Bank, which - was
organized for the convenience of the
jewelry trade in that district.
CASHIER EXCEEDS AUTHORITY
President or North Attleboro Bank
Says Act Arouses Distrust.
NEW YORK. Dec. 18 Albert H.
Wisglu, president of the Jewelers' Na
tional Bank of North Attleboro, who
lives In this city, said today:
"The sudden death of Cashier Sar
srennt natiirnllv i .. j -
' j . . . . v. c u .i 1 1 1 1 : i mii ana
caused an immediate Investigation of
me conamon or me bank. ,
"This shown that n c. ............. . ,
- - ..... .ja. trail l nua
exceeded his authority, and without the
knowledge of the directors had made
loans to local concerns In which. -he
was Interested. The directors, pending
the examination, declared it best for
the bank to remain closed."
STEEL BUSINESS REVIVING
Sheet Plant Will Operate Full Force
Next Week.
PITTSBURG. Dec, 18.-The American
Sheet Steel & Tin Plate Company has re
ceived orders necessitating Increases In
Its working forces and output. At the
Monessen plant near here, consisting of
28 mills, only 13 have been operated since
early in October. Eight more mills were
started today and announcement was
made that all others will start the first
of next week, employing at full time
the entire force of 1400 men. '
Police Colonel Killed.
st. Petersburg, Dec. is Police
Colonel Kalchau was shot dead and sev
eral of his men were wounded today In
a fight which followed an attempt to
search a revolutionist house In the Vasll
lan section of the city.
The police were Anally put to flight
and the revolutionists escaped.
The Chamber of Commerce. Cincinnati,
has the best restaurant In the city, and It
. The birth rate In Germany 1 lx a thou
sand blither than In Eniland.
Store Open Evenings Sales Today, Ladies' Handbags, Toilet Sets, Jewelry, Books, Pictures
SSiLL "Diabolo" and "Mefisto," the Great New Games, the Rage in Europe and America ffL.
The Pure Food Law of the United
States Govt. Guarantees the
Purity of All Drugs Sold by the
"OWL" DRUGSTORE
Lowest Prices . In Oregon on
Drags, Toilet Article, stan
dard Remedies.
Established 1850-FIFTY-SEVEN YEARS IN BUSINESS-EstablUhed 1850
Good Merchandise Only Quality Considered Our Price Are Always the Lowest
THE VICTOR
Talking Machine. $1
Down, $1 a Week
Come in " and Hear the Xew
Record at Our Victor Hall.
UY YOUR GIFTS AT LIPM AN -WOLFE'S. A gift in a box or wrapping paper bearing this name is doubly acceptable.. It is the
hall mark or quality on dry goods and kindred lines, as notable In Its way as the word "Sterling" on sliver. Quality is doubly
valuable when buying gifts, and the place to find quality Is at "Portland's most reputable store." Gifts of simple elegance
and sure appeal. Hundreds of extra clerks and widest aisles in town make shopping a pleasure at Lipman-Wolfe's.
15
$5 Fur Scarfs $3.45;$13.50 Fur Sets $9.65; $7.50 Furs $4.98
"Honesty" is the first principle of conscientious fur selling. Furs have been offered generally throughout this country under name dis
guises. We call each piece by its right name; we sell it as just what it is. Nearseal is not'offered as sealskin, nor is dyed wildcat sold as
-"black lynx," etc., etc. The prices are as far below the prices of fur stores as our jewelry is below the prices of the jewelry stores even on
furs costing $50, $100 and upward,
Fancy Cluster Scarfs of fine quality Isabella, opossum trimmed at each end
with three natural fur tails. Regularly sold at $5.00. flj Q A, C
: tpcf.-xij
Sale
price
Fancy Scarf, of fine blended Isabella opossum, trimmed
with two fur heads and six natural fur tails; all lined
with satin. Sale price $9.00. '
Tie of fine quality natural gray squirrel,
sold regularly at $7.o0. Christmas
35 - inch Four - in -. hand
lined with gray satin,
sale price
60-inch Four-in-Hand Scarfs of finest quality Australian
white ermine; all lined with white satin. Sale price $3.50.
$4.98
Fancy Cluster Scarf of blended water mink, 65 inches long, made with two
tabs and two fur heads, and finished at each end with one CJ C O C
fur tail and two claws. Sold regularly at $8.50. Sale price. . PJ03
Fine Fur Set, consisting of muff and 60-inch scarf, of
finest quality black Australian lynx; the scarf is all lined
with finest brocaded silk; the muff is lined with satin, $20.
Fancy Fur Set of fine quality Isabella opossum; the scarf is 65'inohes Ions:,
trimmed with two fur heads and six natural fur tails; theCJQ fZtZ
muff is lined with satin. Regular $13.50 value ipsJJJ
Separate 12-inch muff of best quality Isabella opossum,
lined with brown satin. The sale price 'is only $5.00
Unadvertised Sales of Leather Goods, Muslin Underwear, Women's Suits, Waists, Millinery
Portland's Largest and Best Holiday Book Store
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you are looking for inexpensive but attractive Christmas presents, why not get books? All the new books and
thousands of titles among the old favorites in our great book store. "
n
7 '.-.
WEI T7ol
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OREGON GOVERNOR ; BOOMED
FOR .VICE-PRESIDENT.
Enthusiastic Democrat Tells Ne
braskans How Republicans Elect
ed Him Twice to Office.
OMAHA. N.eb., Dec. 18. (Special.)
Notwithstanding the small vote usually
polled by the Democratic party in Ore
gon, many citizens of that state believe
that party could do worse than look to
Governor George E. Chamberlain be
fore it selects two men to head-its
National ticket next July, according to
E. A. Sullivan, a hopralser who lives
near Portland.
Mr. Sullivan spent two days in Omaha
and he says that a great many Orego
nians believe the Governor ' Is large
enough -for the place. The fact that the
Republicans of Oregon elected Mr. Cham
berlain twice to the highest executive of
fice in their state, despite his being a
Democrat, Indicates to Mr. Sullivan his
popularity.
"Of course you people of Nebraska
have Mr. Bryan, and he is the only Presi
dential timber you ever discuss," said
Mr. Sullivan in an Interview. "The Dem
ocrats of our state hold conventions
merely as a form and put up straw men
simply to be knocked down at the polls.
And yet our state has a Democratic Gov
ernor who is the most popular executive
we have ever had. We voted for him
the first time because he was a mighty
good fellow, and good fellowship goes
a long way in Oregon'. We were not mis
taken about Chamberlain and elected him
a second time. ' ,
"He has a strong personality. Is a good
mixer and has given us an able adminis
tration, free from partisanship. Of
course we are so near the Jumping off
place out there that we are never consid
ered for Presidential honors, but the
Democrats can do a great deal worse
than nominate Governor Chamberlain.
Of course Mr. Bryan is . popular man in
his party in Oregon, but 'you may hear
more of our Governor (before the next
National Democratic Convention."
Few men come from the Northwest bet
ter prepared or more willing to advertise
their state than Mr. Sullivan. His good
nature, oozes out all over and his stories
about his home state get him an audi
ence In short order. He says he is
not much of a politician, but an awfully
good Oregonian. H plans to see Mr.
Bryan in a social way before he leaves
Nebraska.
Cabinet Officers Recovering.
WASHINGTON, Dec. 18 Secretary
Cortelyou, who is III with la grippe,
was 1 considered somewhat better to
day. Secretary Metcalf is also reported
much better. "
THE DAY'S DEATH RECORD
Gus Ringllng, Circus King.
NEW ORLEANS, Dec. 18. Gus Ring
ling, head of the circus combination
which controls the shows of Ringllng
Bros., Barnum & 'Bailey and Fore-paugh-Sells,
died here today at a sani
tarium. His death was due to a com
plication of diseases. ,
Mr. Ringllng came to New Orleans
two weeks ago, with the hope that the
Southern climate would benefit him.
The body will be taken to Baraboo,
Wis., the family home.
Augustus Ringling was the eldest of
seven brothers. Born a poor boy 65
years ago, he educated himself and wlin
I his brothers started the nucleus of, the
great Ringllng shows. Later one big
circus after another was bought and a
few months ago the famous Barnum &
Bailey shows were absorbed by them.
G. P. RUMMELIN 8 SONS
Jltf?
126 Second St., Bet. Wash, and Alder
CHRISTMAS
GIFTS
Ermine Neckwear and Muffs
Russian SaBIe Scarfs and Muffs
Alaska Mink Neckpieces and Muffs
Also Neckwear and Muffs in Beaver, Otter,
White Fox. Black Lynx, Alaska Bear, etc.
G., in Alaska Sealskin, Mink,
02 IS Russian Pony, Astra-
or
chan, etc
Established 1870
New Effects in Children's Furs .
Fur Rugs and Robes
Far Auto Gaps and Gloves
Send for Catalogue
COMMENCING WEDNESDAY, STORE OPEN EVENINGS
Mrs. John R. McMahon, Author.
NEW YORK. Dec. 18. Mrs. John R.
MacMahon, a Western writer, well
known as Margherlta Arlina Hamm, is
dead of pneumonia In New York. She
was 36 years old and was formerly tha
wife of William Fales.
Tennessee Favors Taft.
NASHVILLE. Dec. 18. Many leading
Republicans met here toda yand organ
ized a State Taft Club, which will urge
the voters of Tennessee to support the
Secretary for. President.
Three hundred Iron railroad cars for
Roumanla have been ordered In Russia.
CLOCKS FOR ALL
THERE'S NO BETTER GIFT
For
STUDY
HALL
PARLOR
BEDROOM
For
GIRLS
BOYS
MEN and
WOMEN
H
OW dear to all of us is some clock of our lives the
old family clock, the one that sped us to school, the
one associated with Time's epochs all along the way!
.overyupay loves a ciock. ' '
Dainty ones for the pirls, handsome ones for the young
men, elegant ones for mantel or library, and all possessing pert
, , feet works; as excellent for practical use as they are beautiful
and ornamental. , They come in bronze, crystal plate glass sides
with trimmings of brass; and in onyx of pure white, also of
green.
LOOK AT THESE TODAY!
Prices Remarkably Moderate
. S end Us Your Old Jewelry as Part Payment for New
Open Evenings Shop by Mail
HEITKEMPER'S Jewelry Store
286 Morrison St. Neit to New CorBett Building
"Lowest Priced Jewelry House for Finest Goods"